Forex - Asia Highlights - Monday 14 August


 04:00 (GMT) 14 Aug

  [Forex Highlights]

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Asia Highlights - Monday 14 August (0100-RMJZ-C01)

Asia Highlights, Monday 14th August

US Overview:

Soft US CPI data and dovish Fed speakers, along with relent in yen cross pressure, allowed EUR/USD to bounce as US short end yields slipped further. Risk steadied into the weekend, helped by Russia pressing to diffuse US-N.Korea tensions

News highlights

- US Jul CPI 0.1% m/m (Prev: 0.0 Mkt: 0.2), ex Food & Energy) 0.1% m/m (Prev: 0.1 Mkt: 0.2)

- Fed's Kashkari - weak CPI data another reason to hold off rate hike

- Fed's Kaplan - should make sure understand inflation before next hike

- Russian Foreign Minister Sergey Lavrov - Russia/China plan to diffuse US-N.Korea tensions (N.Korea missile test freeze in exchange for end to large scale US military exercises)

Asia FX and News -

Asia Highlights - Monday 14 August (0100-RMJZ-C01)

Japan's Q2 GDP at 1.0% q/q, 4% annualised was better than expected.

RBA's Kent hinted high loan to value ratios in the mortgage market will keep the first rate hike some way off. Did not mention the AUD.

A raft of data from China was largely on the soft side of expectation.

UK Govt in a show of unity says it wants Brexit talks to be widened from 'starter issues', keen to start talking of post-Brexit relationships.

Risk appetite a bit keener in Asia (although the N225 negative on catch-up after Friday's Japan holiday. USD/JPY has pushed clear of 109.00 if only to a high around 109.45.EUR/JPY is also higher, over a big figure above Friday's low, the cross only getting very modest help from EUR/USD which has generally been sticking close to 1.1825 in a narrow range trade.

AUD/USD picked up a little after Kent declined to fret on AUD strength but slipped back on the modestly disappointing China data. NZD/USD dipped alongside to keep AUD/NZD rather precariously perched on the 1.08 handle.

GBP doing very little, Cable holding over 1.30, EUR/GBP back below .9100 but well supported now at .9080/85. EUR/CHF can only advance as far as 1.1400 despite the better risk tone.

Nikkei and JGBS -

N225 off the lows in quiet trade, -0.84% at 19564.98. 10yr JGB futs +0.09 at 150.49

Still to come. Data:

06:00 GMT - FI: CPI (Jul) 4cast: % m/m (Mkt: Prev: 0.1)
06:00 GMT - FI: CPI (Jul) 4cast: % y/y (Mkt: Prev: 0.7)
06:00 GMT - SE: AMV Unemployment (Jul) 4cast: % (Mkt: Prev: 3.8)
08:30 GMT - PT: GDP (Prelim) (Q2) 4cast: % q/q (Mkt: Prev: 1)
08:30 GMT - PT: GDP (Prelim) (Q2) 4cast: % y/y (Mkt: Prev: 2.8)
09:00 GMT - EU: Industrial production (Jun) 4cast: % m/m (Mkt: -0.4 Prev: 1.3)
09:00 GMT - EU: Industrial production (Jun) 4cast: % y/y (Mkt: 2.9 Prev: 4)
09:00 GMT - GR: GDP (Prelim) (Q2) 4cast: % q/q (Mkt: Prev: 0.4)
09:00 GMT - GR: GDP (Prelim) (Q2) 4cast: % y/y (Mkt: Prev: 0.8)

Events & Auctions:
PT: Market Holiday - Assumption Day
09:30 GMT - DE: 182-Day Bills Auction (EUR 2bn)
12:50 GMT - FR: Bills Auction
15:30 GMT - US: 3mth Bills Auction
15:30 GMT - US: 6mth Bills


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